IOWA excel solutions exam

An individual who purchases a life annuity is given protection against -inflation -the risk of dying prematurely -the risk of living longer then expected -the risk of not having enough retirement income

the risk of living longer then expected

What kind of insurance policy supplies an income stream over a set period of time that starts when the insured dies? -Family Maintenance Policy -Family income Policy -Survivor Policy -Family survivor policy

Family maintenance Policy

Each life insurance applicant in Missouri is expected to be provided with a(n) -annual report -buyers guide only -buyers guide and policy summary -policy summary only

Buyers guide and policy summary

Wich of these statements is NOT true regarding health coverage for a newborn? -Coverage includes congenital defects -Coverage does not require a physical exam -Coverage is limited to only contengital defects -Coverage begins at moment of birth

Coverage is limited only to contengital defects

A Producer does nor have the authority to change a policy or waive any of its provisions. The health provision that best describes this called the -grace period -incontestable -entire contract -time limit on certain defenses

Entire Contract

any changes made on an insurance application requires the initials of whom? -insured -agent -applicant -beneficiary

applicant

Who is normally considered to be the owner of a 403(b) tax-sheltered annuity? -the 403(b) custodian -the financial institution -the employer -the employee

the employee

Insured losses are covered immediately after a health policy is reinstated when? -the losses result from sickness -the losses result from accidental injuries -hospitilization is required -claim forms are submitted with proof of loss

the losses result from accidental Injuries

Business Disability Buyout Policy is designed: - as an insured expense plan - with a very short elimination period - to pay benefits to the corporation or ther shareholders - to pay benefits to the insureds spouse

to pay benefits to the corporation or ther shareholders

in order to sell a___ Life policy, a producer is required to register with the financial indiustry regulatory authority (FINRA) -Variable -adjustbale -straight -term

variable

Insurance policies are offered on a "take it or leave it" basis, wich make them -Conditional contracts -Aleatory contracts -Unilateral contracts -contracts of adhesion

Contracts of adheison

All of the following are considered to be typical characteristics describes the nature of an insurance contract, EXCEPT ? -bilateral -unilateral -aleatory -adhesion

Bilateral

In iowa wich of the following is conceded an unfair trade practice? -Aleatory -replacement -reciprocation -coercion

Coercion

When an insurer issues a policy that refuses to cover certain risks, this is referred to as a(n) -eleminatin -exclusion -limitation -expectation

Exclusion

What does a 401(k) plan generally provide its participants? - tax free distributions - salary deferral distributions - salary defferel contributions - a defined retirement benefit

Salary deferral contributions

Health Insurance Portability and Accountability Act (HIPAA) -insolvency -health information -financial information -overinsurance

health information

S recently received a $500,000 lump sum retirement buyout from her employer. She would like to buy an annuity that will immediately furnish her with a guaranteed income for life. What type of annuity is best suited for her situation? -403(b) plan -deferred premium -single premium -period certain

single premium

An individual must submit an application for a producers license within ___ days after successfully passing the state examination. -30 -45 -60 -90

90

When an insurance company sends a policy to the insured with an attached application, the element that makes the application part of the contract between the insured and the insurer is called the -entire contract provision -insuring clause -time limit on certain defense provision -legal contract clause

Entire contract provision

Wich settlement option pays a stated amount to an annuitant but no residual value to a beneficiary? -intrest only -fixed period -fixed amount -life income

Life income

what does a medicare supplement policy cover? -long term disability -allowable amounts under medicare part B -non allowable amounts cover by medicare Part A -short term disability

allowable amounts under medicare part B

Group health plans typically contain a coordination of benefits (COB) provision. This provisions purpose is to? -avoid the duplication of benefit payments -assure the policy owner that no changes will be made to the contract -limit the time during wich an insurer may contest the validity of an insurance claim -give the policy owner additional time to pay overdue premiums

avoid the duplication of benefit payments

In order to establish a Health Reimbursement Arrangement (HRA) in MUST -be offered in conjunction with other employer provided health benefits -limit the benefits to the prescription drugs only -be established but the employer -limit the amount of money the employees can contribute toward the account

be established by the employer

which of these actions is taken when a policyowner uses a life insurance policy as collateral for a bank loan ? -revocable assignment -beneficiary change -irrevocable assignment -colleteral assignment

collateral assignment

wich of the following organizations would make reimbursement payments directly to the insured individual cover medical expenditures? Administrative services only plan comercial insurer perferrerd provider organization health maintanence orginizaiton

commercial insurer

wich of these are not an example of a nonforfeiture option? -extended term -reduced paid up -cash surrender -life income

life income

wich of these is NOT an element of Life insurance -mortality rate -insurers expenses -intrest credit -morbidity rate

morbidity rate

which of the following best describes a short term medical expense policy? -conditionally renewable -noncancellable -garunteed renewable -nonrenewable

nonrenewble

In Iowa, monthly-premium health insurance policies must provide a grace period of at least? -7 days -10 days -14 days -31 days

10 days

_______ is the authority given to a producer to transact Buisness on behalf of the insrurer? -Admission -Appointment -Adjustment -Authorization

Appointment

Wich of the following medical expenses does cancer insurance Not Cover? -chemotherapy -Radiation Treatment -physician visit -Arthritis

Arthritis

During an insurance transaction, who does the producer represent ? -insurer -insured -insurance division -producer

insurer

If a corporation pays the premium on a group life policy for its employees, the corporation required to report how much additional taxable income for each employee -the annual premium devided by number on employees -the entire premium paid in a year -half the premium paid in a year -nothing

nothing

Wich of the following is a requirement to attain an Iowa resident producer license? -Graduate from High School -U.S. citizen -At least 18 years old -live in this state at least 5 years

At least 18 years old

When must a producer deliver a Notice Regarding Replacement of Life Insurance? -When the policy is issued -at the policy delivery -at the time of application -when the sales appointment is made

At the time of application

Under an individual health insurance policy, the time limit of certain defense provision states that nonfraudulent misstatements first become incontestable two years ? -from the date that the policy was issued -from the date that the application was signed -from the date the initial premium was collected -from the date the sales appointment

From the date that the policy was issued

P and Q are married and have three children. P is the primary beneficiary on Q's Accidental Death and Dismemberment (AD&D) policy and Q's sister R is the contingent beneficiary. P, Q, and R are involved in a car accident and Q and R are killed instantly. The Accidental Death benefits will be paid to: -R's estate -Q's estate -P and Q's estate -P only

P only

Wich of these statements is incorrect regarding a preferred provider organization (PPO) -PPO's normally have more providers to chose from as compared to an HMO -Prices are negotiated advance for PPO providers -in network PPO providers offer members better coverage incurred expenses -PPO are not a type of managed care systems

PPO's are not a type of managed care systems

M has an insurance policy that also has an outstanding policy loan at the time of M's death. The insurer will deduct the outstanding loan balance from the -Cash value -estate of the insured -policy proceeds -nonforfeiture value

Policy proceeds

the individual who provides general medical care for a patient as well as the referral for specialized care is known as a -physicians assistant -primary care physician -secondary care physician -third party administrator

Primary care physician

K is the insured and P is the sole beneficiary on a life insurance policy. both are involved in a fatal accident where K dies before P. Under the Common Disaster provision, wich of these statements is true? - Proceeds will be paid to P's estate - Proceeds will be divided equally between K's and P's estate - Proceeds will be payable to K's estate if P dies within a specific time - the courts will decide who will receive death benifits

Proceeds will be payable to K's estate if P dies within a specified time

B is a teacher who was injured in a car accident and cannot work. She is now receiving monthly benefits as a result of this accident. Which type of policy does B have? Major medical blanket disability income indemnity

disability income

an insurance company that conducts Buisness in Iowa and was Incorporated in Iowa is called a ____ insurer -Alien -domestic -foreign -native

domestic

An example of unfair discrimination would be -declining an insurance application because of involvement in a hazardous occupation -offering the same terms of coverage to different olicyowners int he same risk classificaiton -offering different terms of coverage for different policyowner have the same risk classification -issuing a policy at a substandard rate because of poor health

offering different terms of coverage for different policyowners having the same classification

wich of these would not be an unfair claims practice -failing to effectuate prompt, fair, and equitable settlements of a claim - turning down a claim without providing the basis of denial -failiung to promptly acknowledge patient communications concerning claims - offering payment of approved claims within 30 days after affirming liability

offering payment of approved claims within 30 days after affirming liability

A father who dies within 3 years after purchasing a life insurance policy on his infant daughter can have the policy premiums waived under which provision? - payor provision -accelerated benefits provision -assignment provision -waiver of premium provision

payor provision

Who has the right to change a revocable beneficiary? -beneficiary -agent -insurance agency -policyowner

policyowner

N is covered under an individual Disability policy with a 30-day Elimination period and a monthly benefit of $500. N is totally disabled for 3 1/2 months. N's total benefit received on this claim is? -$2,000 -$1,750 -$1,500 -$1,250

$1,250

A potential client, age 40, would like to purchase a Whole Life policy that will accumulate cash value at a faster rate in the early years of the policy. Which of these statements made by the producer would be correct? -straight life accumulates faster then limited pay life - 20 pay life accumulated cash value faster then straight life -cash value accumulation of both 20 pay life and straight life depend not he insurers financial rating 20 pay life and straight life accumulates cash value at the same rate

- 20 pay life accumulated cash value faster then straight life

Under federal tax laws, what is the tax treatment for an employer providing $50,000 of a contributory group Term Life plan to all its eligible employees? -portion of the premium paid for by the employer may be a tax deduction - portion of the premiums paid for by the employees may be a tax deduction -portion of the death proceeds are taxable to the beneficiary -portion of the death proceeds are taxable to the estate

- portion of the premiums paid for by the employer may be a tax deduction

A Term life insurance Policy matures? -upon the endowment of the contract -upon the death of the insured -when the cash value equals the death benefit - upon the insureds death during the term of the policy

- upon the insureds death during the term of the policy

ABC Insurance Company has accepted a life insurance application which contains unanswered questions. The company then makes the application part of the life contract. In this situation, the insurer has? - Waived one of its legal rights - issued a voidable policy - committed an act of fraud - assigned the risk to a reinsurer

- waived one of its legal rights

J is 35-years old and looking to purchase a whole life insurance policy. Which of the following types of policies will provide the most rapid growth of cash value? - Life paid-up at age 70 -20 pay life -increasing term to age 65 -straight life

-20 pay life

A potential client, age 40, would like to purchase a Whole Life policy that will accumulate cash value at a faster rate in the early years of the policy. Which of these statements made by the producer would be correct? -Straight life accumulates faster then limited-pay life -20 pay life accumulated cash value fasrter then straight life -cash value accumulation of both 20-pay life and straight life depend on the financial rating 20 -paylife and straight life accumulate value at the same rate

-20 pay life accumulated cash value fasrter then straight life

The required free look period in a medicare supplememnt policy is ____ days -7 -10 -15 -30

-30

Wich of the following permits an insurance company to transact Buisness in Iowa? - Certificate of admission - Certificate of domestication -Certificate of authenticity -Certificate of authority

-Certificate of authority

X is insured with a disability income policy that provides coverage until age 65. This policy allows the insurer to change the premium rate for the overall risk class assigned. Which of these renewability features does this policy contain? -Guaranteed Assignable -Guaranteed renewable -optionally cancellable -noncancellable

-Guaranteed renewable

An Iowa insurance produce has violated an unfair trade practice. the commissioner may penalize the produce in wich of the following manner? -licesnse suspension without a hearing -refusal to renew license without a hearing -a fine only after a hearing -incarceration

-a fine only after a hearing

The option that provides an additional death benefit for a limited amount of time at the lowest possible cost is called a? -term rider -accidental death dismemberment rider (AD& D) -family rider -annuity

-accidental death dismemberment rider (AD& D)

In health insurance policies, a wavier of premium provision keeps the coverage in force without premium payments? - Whenever an insured is unable to work -During the time an insured is confined in a hospital -following an accidental, but not during sickness -after an insured has become totally disabled as defined in the policy

-after an insured has become totally disabled as defined in the policy

at what point may a produce sell insurance for an insurer -after taking the licensing exam -after completing a prelicensing course -after being properly appointed by the insurer -after meeting the insurers production requirements

-after being properly appointed by the insurer

Iowa insurance laws address diabetes coverage. Under Iowa insurance laws, Policies MUST? -Waive any cost sharing for diabetic supplies -Cover only self-management training for type II diabetes -Cover all diabetic supplies and treatment -apply the same deductible and copays to cover diabetic supplies as other medical conditions

-apply the same deductible and copays to cover diabetic supplies as other medical conditions

wich of the following correctly explains the actions an agent should take if a customer wants to apply for an insurance policy? -have the customer sign a blank application, then take the application back to his office to complete prior to sending it off to the insurance company - complete the application over the phone with the customer, sign the applicaiton for the customer, then send the application off to the insurance company -complete the application and review the information with the customer prior to the obtainining the sutomers signature, then send the application off to the insurance company -have the customer fill out the application out send it to his office for him to sign, then send it off the insurance company

-complete the application and review the information with the customer prior to the obtainining the sutomers signature, then send the application off to the insurance company.

The incontestable clause allows an insurer to ? -disallow a change of ownership throughout the contestable period - disallow a change beneficiary during the contestable period -contest a claim at anytime if the case of death was accidental -contest a claim during the contestable period

-contest a claim during the contestable period

A Buisness overhead expense policy - cover any loss of income by the insurance owner -covers Buisness expenses such as rent and utilities -covers employee wages only -reimburses the company for any reduction in sales due to the owners disability

-covers Buisness expenses such as rent and utilities

T owns an Accident & Health policy and notifies her insurance company that she has chosen a less hazardous occupation. Under the Change of Occupation provision, which of the following actions may her insurance company take? - Allow her to take tax deduction on unearned premiums -increasre her policys coverage amount -decreasae her policys coverage amount -nothing

-increasre her policys coverage amount

A policy owner would like to change the beneficiary on an accidental death and dismemberment (AD&D) insurance policy and make the change the permanent. wich type of designation would fulfill this need ? -revocable -contingent -irrevocable -primary

-irrevocable

wich of the following statements about long-term care insurance is correct? -it must provide coverage for at least 12 consecutive months -its is another name for hospitalization insurance -it must contain a 10 day free look period -insurers may cancel a long term care policy because of the insured mental health

-it must provide coverage for at least 12 consecutive months

Individual Health Insurance policy that offers the broadest protection is a ____ policy -surgical benefit -indemnity medical -major medical -hostpital expense

-major medical

under a garanteed renewable health insurance policy, the insurer - may refuse to continue coverage upon policy renewal - is permitted to require proof of insurability upon policy renewal - will typically decrease the premium upon policy renewal -may cancel the policy for nonpayment only

-may cancel the policy for nonpayment only

K buys a policy where the premium stays fixed for the first 5 years. The premium then increases in year 6 and stays level thereafter, all the while the death benefit remains the same. What kind of policy is this? - Variable Life - adjustable Life -graded premium whole life -modified whole life

-modified whole life

Deductibeles are used to in health polocies to lower? - The incidents of fruad - the coinsurance amount -overuse of medical services -adverse selection

-overuse of medical services

Whole life insurance policies are contractually guaranteed to provide each of the following except - cash value that will ultimately replace the death benefit -nonforfeiuture benefit options -premuims that remain fixed for the life of the policy -partial withdrawal features beyond a surrender change period

-partial withdrawal features beyond a surrender change period

what is considered to be a characteristic of a conditionally renewable health insurance policy ? -premiums may increase at time of renewal -premiums may increase at any time -policy may be renewed at the disrection of the insured -policy may be amended by the insurer at any time

-premiums may increase at time of renewal

Wich of the following statements about a guaranteed renewable Health insurance policy Is correct? -premiums normally decrease at time of renewal -premiums normally increaase at time of renewal -policy can be renewed at any time by the company -policy can be cancelled at any time by the company

-premiums normally increaase at time of renewal

why must an insurance applicant answer all questions on the application ? -statements and representation on the application are part of the consideration for issuing a policy -the national association of insurance commissioners (NAIC) require all of the questions be answered -the medical information bureau (MIB) requires this for an insurer to be a member -statements and representations are considered garuntees

-statements and representation on the application are part of the consideration for issuing a policy

In order for coverage on a non-medical insurance application to take effect the same day, the producer must collect a signed application and? -A medical information report -the initial premium -forward it immediatly to the insurer -attending physician statement

-the initial premium

Medicare is intended for all of the following groups EXCEPT -those enrolled as a full time -those receiving social security disability benefits fora at least 24 months -those afflicted with chronic kidney failure -those 65 and older

-those enrolled as a full time

T is an employee covered under a Group Life policy. If T's employment is terminated, the conversion privilege gives T the right to convert? -to an individual policy, only by providing evidence for the insurability -to an individual policy, only if the employer pays the premiums -to an individual policy upon employment termination -to an individual policy with a high amount of coverage

-to an individual policy upon employment termination

Wich of the following Best describes how pre-admission certification is used? -used to assist in underwriting -used to prevent nonessential medical costs -used to minimize hospital lawsuits -used to help process claims

-used to prevent nonessential medical costs

Term Life Policies that have the ability to be converted to permanent coverage may do so during a specific time period. This conversion period? -may be altered by the policy owner -is controlled by the NAIC -is the same in all contracts -varies according to the contract

-varies according to the contract

According to Iowa law, a group Life insurance policy requires a minimum of how many insureds? -10 -25 -100 -no minimum

10

what is the Minimum benefit period that must be offered by a long term care policy -6 months -12 months -18 months -24 months

12 moths

V is insured under an individual Disability Income policy with a 30-day Elimination period. On July 1, he is involved in an accident and temporarily disabled. He returns to work on December 1. How many months of benefit are payable? -6 months -5 months -4.5 months -4 months

4 months

T took out a $50,000 life insurance policy with an Accidental Death and Dismemberment rider. Five years later, T commits suicide. How much will the insurer pay? -The total premiums minus any policy loans -Nothing -50,000 -100,000

50,000

A disability income policy owner recently submitted a claim for a chronic neck problem that has now resulted in total disability. The original neck injury occurred before the applicatuion was taken 5 years prior. Then neck injury was never was disclosed to the insurer at the time of application. How will the insurer handle the claim? -Claim will be paid and coverage will ramain in force -Claim will be denied and coverage will rain in force -Claim will be denied and coverage will be cancelled -Claim will be denied, the coverage cancelled, and all the premiums pid will be refunded

Claim will be paid and coverage will ramain in force

S is the policyowner of a Major Medical policy. The premiums are paid monthly and due on the 1st of each month. S fails to make September's payment and is hospitalized October 15th. When S files the claim for this hospitalization, the insurer will likely? -pay half the claim -pay the full claim -pay the claim minus the September and October premium payments -deny the claim

Deny the claim

The sections of an insurance contract which limit coverage are called? -waivers -riders -exclusions -limitations

Exclusions

wich of these is not relevant when determining the amount of personal life insurance needed -existing life insurance coverage -local unemployment rate -household income -household debt

Local unemployment rate

Periodic health claim payments MUST be made at least? -monthly -weekly -daily -annually

Monthly

A Medicare Supplement Policy can be cancelled by the insurer for? -excessive filling claims -nonpayment -poor health -smoking

Nonpayment

When a Medicare supplement policy is delivered disclosure standards require that a ______ coverage be provided to the insured? -Description -Outline -Proof -Summary

Outline

What is Old age and survivors Health insurance (OASDHI) also Known as? -Medicare -Social Security -Medicaid -FICA

Social security

what is the eliminatoin of an individual disability policy ? -time period an insured must wait before coverage begins time period a disabled person must wait before benefits are paid -time period after the policy issue date in wich the provisions are still contestable -the point in time when benefits are no longer payable

Time period a disabled person must wait before benefits are paid

An insurance company receives E's application for an individual health policy. E did not complete all of the medical history questions because she could not remember the exact dates. E signed the policy and submitted it to the insurance company anyway. A few weeks later, E suffers a heart attack and is hospitalized without completing the medical history questions and paying the initial premium. E is not insured. Which of the following clauses details the conditions that E did not meet? -entire contract clause -MIB clause -insuring clause -consideration clause

consideration clause

Wich of the following best describes a Hospital indemnity policy? -coverage that reimburse an insured for surgeon expenses -coverage that pays a stated amount per day of a coverd hospitalization -coverage that replaces lost income due to hospitalization -coverage that pays for hospitalization room and board

coverage that pays a stated amount per day of a coverd hospitalization

wich of these is not a duty of the commissioner? -enforce current insurance laws -create new insurance laws -issue licenses -approve policy forms

create new insurance laws

How often must the commissioner examine each domestic insurance company? -Every Year -every 2 years every 3 years every 5 years

every 5 years

Wich of the following Nonforfeiture options offers the highest death benefit? -Cash surrender -reduced paid up -Extended term -dividend

extended term

What does a Face Amount Plus Cash Value Policy supposed to pay at the insured's death? -face amount plus the policys cash value -face amount plus the policy dividends -the greater amount of the policy death benefit or the cash value -face amount plus the total premium paid throughout the life of the policy

face amount plus the policy cash value